Text messages will ask them to switch off their air conditioners and to consider using a barbeque instead of electric cook-tops, in exchange for incentives such as rebates on their power bills, gift vouchers or movie tickets.
The trial will run in New South Wales, Victoria and South Australia.
But speaking with the ABC, Chief Executive of the Australian Industry Group, Innes Willox says whilst the initiative is welcome, it's a sad indictment.
"It's a pretty sad indictment of the system and of the market that we've got to this point where the Government is having to basically offer financial inducements for people and businesses to switch off power and that really says that we've reached a pretty low point."